Startup News, Venture Investments, Investment Deals, Global Venture Market, AI Startups, Startup Funding, Mega Rounds
By mid-November 2025, the global venture capital market is experiencing a robust recovery following several years of decline. Investors worldwide are actively funding technology startups again: record deals are being made, IPO plans are returning to the agenda, and the largest funds are triumphantly re-entering the market with substantial investments.
Global Venture Market Upswing
Recent data confirms this resurgence: in the third quarter of 2025, the global volume of venture investments reached around $97 billion, representing approximately a 38% increase compared to the previous year, and slightly above the previous quarter's results. This marks the best quarterly performance since 2021 and the fourth consecutive quarter where total investments surpassed the $90 billion mark. Following the "venture winter" of 2022-2023, startup funding has been steadily rising for four reporting periods, reflecting a return of investor confidence. The primary contribution to growth came from mega rounds in the artificial intelligence (AI) sector; however, increases are observed across all stages, with particularly rapid growth in investments in late-stage startups. Approximately two-thirds of all venture investments in the last quarter went to companies in the US, but activity is also visible in Europe, Asia, the Middle East, and other regions, underlining the global nature of the upswing. Venture activity is growing in nearly all regions of the world. The US remains the leader (with significant growth in the AI segment), while the Middle East saw nearly a doubling of investment volume over the year. In Europe, for the first time in a decade, Germany surpassed the UK in total venture capital. In Latin America, Mexico outperformed Brazil in terms of attracted funds. India, Southeast Asian countries, and Gulf states are attracting record flows of capital amid a relative decline in activity in China. The startup scenes in Russia and neighbouring countries are also keen to keep pace, with new funds and programmes emerging to foster local ecosystems despite external constraints.
The Return of Mega Funds
Major venture players are once again raising record funds, reaffirming their belief in the market's prospects. SoftBank launched a new Vision Fund with a volume of approximately $40 billion, focused on AI and robotics, while Sequoia Capital announced funds of $950 million for late-stage and early-stage startups. Sovereign funds from the Gulf region have also become more active, channeling billions of dollars into technology companies worldwide. The emergence of such mega structures promises startups greater opportunities for capital access and signifies a new phase of technological growth.
Record Investments in AI and a New Wave of Unicorns
The AI sector remains the primary driver of the current venture upturn, demonstrating unprecedented volumes of funding. Since the start of 2025, AI startups in the US have raised over $160 billion, accounting for about two-thirds of all venture fund investments in the country. Analysts estimate that by the end of the year, global investments in AI companies could exceed $200 billion—an unprecedented level for the industry. The combined valuation of the ten largest AI startups (including OpenAI, Anthropic, xAI, and others) has approached an astronomical $1 trillion.
The influx of capital into AI is accompanied by the emergence of numerous new "unicorns" and a high concentration of investments. A large portion of the funds is directed towards a narrow circle of industry leaders receiving the largest rounds. Approximately 70% of all venture investments in American startups lately have been concentrated on just a few high-demand companies.
For instance, French startup Mistral AI set a record for Europe, securing around $2 billion, while American OpenAI received $13 billion in a single tranche of funding. Recently, Elon Musk's startup xAI garnered the support of investors for $15 billion (valuation ~$200 billion), further heating the race for AI mega rounds. Such colossal deals drive company valuations to astronomical levels. Nevertheless, the venture market benefits from this surge in activity: capital and talent are concentrating around promising directions, forecasting breakthrough innovations in the future, even if some funded projects ultimately do not meet expectations.
In recent weeks, several startups have announced significant funding rounds, confirming the return of “big checks” to the market:
- xAI (USA) — Elon Musk's startup attracted $15 billion (valuation ~ $200 billion) for the development of advanced AI models and the purchase of graphics processors for training neural networks.
- Cursor (USA) — raised $2.3 billion in a Series D round at a valuation of $29.3 billion to expand its AI programming assistant platform.
- CHAOS Industries (USA) — obtained $510 million in funding to scale production of next-generation autonomous defence systems.
The Revival of IPOs and Exit Prospects
Against a backdrop of rising valuations and capital influx, technology companies are once again eyeing public markets. Following a two-year lull, a resurgence of IPOs is emerging as a long-awaited exit path for venture investors. Earlier in 2025, several large "unicorn" startups successfully went public: for example, the stablecoin issuer Circle conducted an IPO at a valuation of around $7 billion, while cryptocurrency exchange Bullish attracted approximately $1.1 billion through its offering, reaching a market capitalisation of about $5-6 billion. These debuts demonstrated that the market has renewed its appetite for new public offerings, particularly in the fintech and cryptocurrency segments.
Now, major players are keen to capitalise on the newly opened "window" of opportunities. According to insider reports, ChatGPT creator OpenAI is considering an IPO as early as 2026, with a potential valuation of up to $1 trillion. In the blockchain industry, wallet developer MetaMask, through ConsenSys, has engaged banks JPMorgan and Goldman Sachs to prepare for an IPO slated for 2026. If it materialises, this would mark the first public offering of such a large company from the Ethereum ecosystem, a landmark event for the entire crypto industry.
Improved market conditions and the gradual clarification of regulatory requirements are also bolstering confidence among startups planning listings. As a result, the largest private companies once again view the public market as a viable opportunity to raise capital and provide liquidity to investors. Experts predict that the number of notable technology IPOs will increase over the next couple of years as the “window” for exits remains open, and market multiples favour high valuations.
Beyond AI: Healthcare, Climate, Space, and Defence
Despite AI's dominance, substantial funds are also flowing into other high-tech sectors. For instance, healthcare and biotechnology attracted around $15 billion in venture capital in the third quarter of 2025 (ranking third after AI and IT infrastructure). The synergy between technology and medicine is evident in major rounds, such as the genomic medicine project Fireworks AI, which received $250 million for its AI-healthcare platform development. Investors are also showing increased interest in climate and “green” innovations—from biodegradable materials made from algae to components for electric vehicles—though the scale of such deals currently pales compared to the giant rounds in AI.
Attention is also growing towards space, defence, and other hard-tech areas. In Europe, for example, satellite startup EnduroSat secured over $100 million (with participation from funds like Google Ventures and Lux Capital) to scale the production of small satellites in response to the demand for accessible communication means in space. Overall, deep-tech sectors are witnessing an upswing: in 2025, robotic, semiconductor, and quantum computing manufacturers collectively received funding in the tens of billions of dollars. While these volumes may not match the AI phenomenon, venture capital is increasingly being diversified—reducing the risk of overheating in specific niches and contributing to balanced technological progress.
Consolidation and M&A: Mega Deals Reshape the Landscape
High startup valuations and fierce competition are stimulating a new wave of consolidation within the industry. Major mergers and acquisitions are again taking centre stage, reshaping the power dynamics in the market. Strategic M&A helps corporations and investors accelerate growth, gain access to new technologies, or enter adjacent markets, while large-scale acquisitions provide venture funds with essential exits.
For instance, in October, investment bank Goldman Sachs announced its acquisition of venture firm Industry Ventures for nearly $1 billion. This deal is one of the largest acquisitions in the venture sector, reflecting the growing interest of banking capital in technology and startup assets. Major tech corporations have also ramped up acquisitions, taking advantage of stabilising valuations: over the past year, several industry leaders have acquired promising startups to strengthen their positions in key areas (AI, cybersecurity, etc.). The wave of consolidation is also impacting the crypto industry, with traditional financial companies showing heightened interest in acquiring blockchain startups. According to media reports, Mastercard is negotiating the purchase of several crypto projects (including infrastructure startup ZeroHash) for nearly $2 billion, aiming to establish a foothold in the digital assets space. The uptick in M&A—from bank investments in venture platforms to major tech deals—indicates the “maturation” of the market and offers startups more options for successful exits and integration into larger businesses.
The Return of Interest in Crypto Startups
Following a prolonged "crypto winter," the blockchain startup market is coming back to life: in October 2025, funding for crypto startups reached a peak not seen in recent years. During that month, projects secured several billion dollars in investment (over $20 billion since the start of the year). Leading venture funds (Sequoia Capital, Andreessen Horowitz, etc.) joined the largest October rounds, signalling a return of confidence in the sector.
The rise in digital asset prices (Bitcoin surpassed the historic $100,000 mark in November) and the gradual clarification of regulations are also stimulating interest among venture investors. Blockchain projects are once again attracting substantial funds and attention from both funds and large corporations. This revival can essentially be labelled a "renaissance" of crypto investments following a downturn, although market participants still exhibit selectivity and caution.
